Bank

<a href="https://bitcoinworld.co.in/paxful-co-founder-faces-prison-for-failing-to-implement-aml-protocols/" title="Paxful Co-Founder Faces Prison For Failing to Implement AML Protocols" rel="nofollow"></a>
Artur Schaback, co-founder and former CTO of Paxful, faces up to five years in prison after admitting to failing to implement essential Anti-Money Laundering (AML) protocols at the cryptocurrency exchange. 
The US Justice Department <a href="https://www.justice.gov/opa/pr/paxful-inc-co-founder-pleads-guilty-conspiracy-fail-maintain-effective-anti-money-laundering">revealed</a> that Schaback’s sentencing is set for November 4, following his guilty plea on July 8. 
Schaback’s plea deal includes a $5 million fine, payable in three installments: $1 million immediately, $3 million by the sentencing date, and the final $1 million over the next two years. He will also step down from Paxful’s board. 
Prosecutors indicated that Schaback, along with Paxful’s then-CEO, neglected to establish a required AML program within the initial 90 days of the business’s operation, as mandated by the Bank Secrecy Act. They also failed to create a Know Your Customer (KYC) process to verify users’ identities. 
This oversight allowed Paxful to be used for money laundering and other illegal activities between July 2015 and June 2019.&nbsp; 
Schaback and his partner permitted trading on the platform without adequate user verification and falsely advertised Paxful as not requiring KYC.

Paxful Co-Founder Faces Prison For Failing to Implement AML Protocols

ItsBitcoinWorld

Other articles published on Jul 10, 2024

Are Shiba Inu (SHIB) developers ditching the project?

ETH Futures Skyrocket to 3.1M, Hinting at Ethereum ETF Approval!

Breaking: BitMEX Pleads Guilty To Bank Secrecy Act Offense

Secure Your Qubetics Whitelist Spot and Watch It Soar Past Chainlink and Internet Computer (ICP)

Polygon surpasses Bitcoin, Solana in daily NFT sales volume

MoonBag’s Top Meme Coin Presale and $1 Prediction by 2025 Leaves TRON and EOS Behind

Join our free newsletter for daily crypto updates!